Macro

Income & Employment

Medium

Identify the monetary invention that can Close the inflationary group:

Lowering of the bank rate

Reduction in availability of credit

Cut back on government spending

An increase in taxes

✅ Correct Option: 2

The question asks for a MONETARY instrument to close the inflationary gap. Reduction in availability of credit is a contractionary monetary measure. Options C and D are fiscal measures. Option A worsens inflation.

2026: 21 May Shift 1

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. What does it refer to in economics?

2023: 11 June Shift 3

The shape of investment function when I is autonomous curve is represented through :

2025: 26 May Shift 2

If the entire additional income is saved in an economy, the value of investment multiplier will be

2025: 28 May Shift 1

Match List-I with List-II

List-I	List-II
A. MPS	I. Saving Per unit of Income.
B. MPC	II. Consumption per unit of Income
C. APS	III. Change in consumption per unit change in income.
D. APC	IV. Change in savings per unit change in income.

Choose the correct answer from the options given below:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(A) - (I), (B) - (III), (C) - (II), (D) - (IV)
(A) - (IV), (B) - (III), (C) - (I), (D) - (II)
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

2026: 31 May Shift 1

Find the incorrect option from the following?

2026: 6 June Shift 1

When the consumption is changed as per the change in income level such consumption is known as:

Identify the monetary invention that can Close the inflationary group:

Solution

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CUET Economics Past Year Questions (Topic-Wise)